Service Charges
Service charges and amenity charges are put in place to ensure your development is kept in good order & maintained regularly.
Charges are based on the services that are required for your development and may include a provision for a reserve or sinking fund.
How much do you pay:
Service charge amounts are based on anticipated costs for the year. The service charge year, apportionment and when you pay is determined by your transfer or lease document.
Service charge payments are held in trust in a ring-fenced client account and funds are administered in accordance with the regulations of our professional body.
What is included in your service charge payment?
Cleaning: Regular cleaning and window cleaning of internal communal areas
Gardening/Grounds Maintenance: regular gardening services in the communal grounds including clearing of pathways, weeding, cutting of lawns, and pruning shrubs and plants.
General repairs: Provision of general repair items in the communal areas including repairs to communal front doors, door entry, locksmiths, small electrical repairs, bin stores, cupboards, and general items.
Utilities: Landlord supply for electricity in the communal areas including lights, door entry, fire alarms. Water charges on some developments may apply.
Lifts and Plant room: Servicing of the lifts and water boosters are necessary to keep them in good working order and compliant.
Safety systems: Fire Alarms, AOV’s, emergency lighting, lightning protection are required to be maintained and serviced regularly to ensure they meet health & safety regulations.
Insurance & Insurance revaluation: Buildings insurance, directors and officers insurance, engineering insurance and public liability insurance maybe required to provide protection for stakeholders.
Insurance policies for the development cover the communal areas only. An excess amount is payable on any claim. Please note contents insurance is not included with the building. It is a condition of the buildings insurance policy that insurers must be informed if a property is unoccupied for 30 days or more. Please ensure you contact the office in these circumstances.
Insurance revaluation is required to make sure the rebuild value for the development is calculated correctly in the insurance premiums.
Health & Safety: Fire risk assessments, Asbestos surveys, Legionella and Electrical safety are carried out to ensure the building meets current regulation.
Management fees: Management fees are taken as per the management agreement for the management of services to the development including issuing and collecting service charges, organising monthly cleaning & gardening, organising regular maintenance, and day to day running of the development.
Accountants: Independent accountants are instructed to prepare and certify year end accounts as per the guidelines of our regulatory bodies. It may also be a requirement as per the terms of your lease/transfer document.
Sundry Items: Provisions are made for any small ad hoc items that are required. These items may include key cutting, bank charges and postage.
Reserve/Sinking funds: Provisions are made each year to set aside funds to contribute to major works that are required at a later stage. Major works include roof works, internal external repairs and redecorations and resurfacing of roads.
How do you know if you are paying too much or too little?
After the service charge year has passed, we send all accounting documentation to a qualified independent accountant, they will then produce a draft copy of the service charge accounts to the freeholder or directors of management company to look through and finalise. Once finalised, the accounts will be issued to you. They will show actual costs against budgeted costs and any overspend/underspend will be allocated to your account as per the terms of your lease. If you require more information, please contact us on 01622 951700 or email info@morelloestates.co.uk
